Core Viewpoint - Argent Trust Company declared a cash distribution of $0.016418 per unit for the Permian Basin Royalty Trust, with the distribution date set for September 15, 2025, and record date on August 29, 2025. The distribution does not include proceeds from the Waddell Ranch properties due to production costs exceeding gross proceeds for July 2025 [1][4]. Distribution Summary - The current month's distribution increased compared to the previous month, primarily due to higher natural oil volumes from Texas Royalty Properties, although this was partially offset by lower natural gas volumes and decreased oil and gas pricing [2]. - The total production for Texas Royalty Properties was 16,672 barrels of oil and 9,952 Mcf of gas, with the Trust's allocated portion being 14,645 barrels of oil and 8,742 Mcf of gas. The average prices were $62.02 per barrel for oil and $7.53 per Mcf for gas, leading to revenues of $1,109,052 after deducting taxes and expenses [5][6]. Waddell Ranch Properties - Blackbeard Operating, LLC has not provided necessary information for calculating net profits interest (NPI) proceeds for August 2025, which affects the distribution. If NPI proceeds are received by the record date, they will be included in the September distribution [3][4]. - All excess costs from the Waddell Ranch properties must be recovered through future proceeds before any distributions can be made to the Trust. Blackbeard is now providing production, pricing, and cost information quarterly instead of monthly [4][8]. Legal Matters - The Trustee has filed a lawsuit against Blackbeard for over $9 million in damages, alleging improper calculations and deductions related to royalties owed to the Trust. The trial is scheduled for November 17, 2025 [10][11].

Core Points - Argent Trust Company, as the trustee of the San Juan Basin Royalty Trust, will not declare a monthly cash distribution to Unit Holders due to the application of net proceeds of $1,499,498 to excess production costs from Hilcorp's drilling activities in 2024 [1] - The cumulative balance of excess production costs is approximately $15,160,257 gross ($11,370,193 net to the Trust), reflecting a decrease of $1,999,331 gross ($1,499,498 net) from the previous month [1] - Hilcorp reported total revenue of $6,984,564 for March 2025, with gas revenues of $6,904,591 and oil revenues of $79,973, while production costs for the same month were $4,985,233 [2] - The average gas price for March 2025 was $2.82 per Mcf ($2.54 per MMBtu), a decrease of $0.54 per Mcf ($0.48 per MMBtu) compared to February 2025 [4] - Trust administrative expenses for the month totaled $85,694, with interest income of $856 applied to cover part of these expenses [3] - Cash reserves were utilized to cover administrative expenses, bringing the balance of cash reserves maintained by the Trustee to $32,959, with plans to increase reserves to $2.0 million before future distributions [5] Financial Overview - Hilcorp's production costs for March 2025 included $3,193,460 in lease operating expenses, $786,589 in severance taxes, and $1,005,184 in capital costs [2] - The Trust's ongoing audit process includes detailed analysis of Hilcorp's pricing and rates charged, ensuring compliance with operative Trust agreements [6]